Cost of merchandise sold equals beginning inventory:
A)Plus net purchases plus ending inventory
B)Plus net purchases minus ending inventory
C)Minus net purchases minus ending inventory
D)Minus net purchases plus ending inventory
E)None of these

Question

Quizplus · Accepted Answer

The cost of merchandise sold is calculated by adding net purchases to the beginning inventory and then subtracting the ending inventory.

Cost of Merchandise Sold Equals Beginning Inventory